Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice.
Ethereum’s continuation pattern could provide buying opportunities in the four-hour time frame.
The king recorded improvements in his funding rates over the past week.
Ethereum [ETH] lost a third of its value in the mid-September reversal of its six-month trendline resistance (white, dashed). The subsequent drop below the 20 EMA (red), 50 EMA (cyan) and 200 EMA (green) put the altcoin on its bearish track.
Here are AMBCryptos price prediction for Ethereum [ETH] for 2023-24
If the $1,275 support is solid, it could invalidate likely bearish tendencies. At the time of writing, ETH was trading at $1,294.8.
ETH witnessed a symmetrical triangle, will there be a breakout?
The recent price moves created a symmetrical triangular setup after a steep downtrend in the four hour time frame. More often than not, a symmetrical triangle acts as a continuation pattern. Consequently, a drop below the lower trendline of the triangle could expose the crypto to a short-term drop before a launch.
This decline could lead to a retest of the first major support level in the $1,240 support zone. Buyers could then most likely aim for a near-term recovery. Additionally, the 20/50 EMA bearish crossover reinforced a slight selling advantage.
But an immediate break above the EMA barriers followed by the triangle’s top trendline could invalidate bearish tendencies. In this situation, the potential targets would be near the 200 EMA and the $1,387 zone.
The Relative Strength Index (RSI) showed a slight bearish edge after falling below equilibrium. Nevertheless, the lower lows diverged bullishly with the price action. On the downside, the Chaikin Money Flow (CMF) continued to display a bullish edge by holding its rung above zero.
Improved Funding Rates
Over the past week, ETH’s funding ratio on Binance turned positive, reflecting increased bullish sentiment in the futures market. On the other hand, the rate on FTX was slightly below 0%.
Should it continue on the path of turning positive, short-term sentiment could help buyers reverse the bearishness.
Last but not least, investors/traders should watch out for Bitcoin’s [BTC] movement. This is because ETH shared a 40% 30-day correlation with the king coin.
This post Ethereum [ETH] Price analysis: October 20
was published first on https://ambcrypto.com/ethereum-eth-price-analysis-20-october/